Cost of Living in Portugal vs USA in 2025: A Comprehensive Guide

Relocating to Portugal: Key Drivers

Portugal is one of the very few countries that consistently scores very high for its quality of life. In 2025, Portugal secured the 7^th rank for quality of life in the Global Peace Index, making it one of the safest places to invest in with economic opportunities.

Portugal is also a major destination for foreign direct investment, especially for high-net-worth investors who want to gain a permanent residence in the European Union. In the Global Residency and Investment Report by Global Citizens Solutions (GCS), Portugal took the 5^th spot, scoring 89.20 for its ease of doing business, beneficial tax rates, and investment options.

In the GCS Global Passport Index, Portugal ranked 7^th for quality of living, while the United States of America ranked 38^th for quality of living. Our residence and citizenship division, Global Citizen Solutions, ranks countries based on the cost of living, sustainable development, levels of freedom, happiness levels, migrant acceptance, and environmental performance.

Is living in Portugal cheaper than in the USA?

Yes, life in Portugal is mostly cheaper than in the United States. Americans enjoy a lower cost of living, a more relaxed pace of life, lower crime rates, and a stronger sense of community.

Every city in Portugal has a different cost of living, but a single person can comfortably live on €1,750 to €2,350 a month in big cities like Lisbon or on €1,200 to €1,750 a month in a smaller town. You would spend the most on rent, especially if you live in the Lisbon city center.

Although Lisbon in Portugal is expensive, overall expenses are significantly cheaper than in the United States. For example, rent in Lisbon is 52.2 percent more affordable than in New York and the cost of living in Lisbon is 46.8 percent lower.

Monthly Cost of Living Comparison: Portugal vs. USA

The cost of living in Portugal is cheaper than in the United States, with overall expenses averaging 39.2 percent lower.

A couple can comfortably live in Portugal for $2,500 to $3,000 per month outside major cities, compared to $3,000 to $4,000 in the US, making Portugal a more affordable option for American expats.

A good way to get a more detailed idea of the cost of living in Portugal vs the US is to compare the cost of living between major cities in both countries.

Below, we will share a cost-of-living comparison between the capitals of Portugal and America, according to Numbeo:

• Cost of living in Lisbon, including the average rent prices, is around 40.6 percent lower than in Washington, DC
• Average rent prices are around 45.3 percent lower in Lisbon than in Washington, DC
• Grocery prices are around 45.1 percent lower in Lisbon than in Washington, DC
• Restaurant prices are roughly 44.3 percent lower in Lisbon than in Washington, DC

Regional Differences: Lisbon, Porto, Algarve vs. American Cities

Every city and region in Portugal has something unique to offer to American expats. Here is a quick look at the regional differences versus popular US cities.

Lisbon

Lisbon and San Francisco have a lot in common, especially the weather and the beautiful bridge. But the capital of Portugal is over 50 percent cheaper than the US coastal city.

Lisbon is a big city with an active nightlife, many career options, and real estate investment opportunities.

The average monthly costs for a single person in Lisbon is about €747 without rent. Rent for a one-bedroom apartment in the city center costs around €1,410. Overall, living in Lisbon feels similar to life in Austin or Denver; however, you get lower healthcare, transport, and grocery expenses.

Porto

Living costs in Porto are about 13.9 percent cheaper than in Lisbon. It is a slightly smaller city with average monthly costs of about €702 for a single person. Rent for a one-bedroom apartment in the city center costs around €1,050.

Life in Porto can feel just as affordable as in Raleigh, North Carolina, but the rents, consumer prices, and healthcare costs are considerably lower than in the United States. For a historic city even more affordable than Porto, the cost of living in Braga, just to the north of Porto, may also be appealing.

Algarve

The Algarve has a similar lifestyle and climate to Miami, Florida, but it is 61.4 percent cheaper for those who want a new home. In Faro, the average rent for a one-bedroom apartment in the city center is about €983. The further away from the center, the more affordable the costs, making it a popular destination for expats.

Living Expenses in Portugal vs the USA

For American expats earning foreign income or a monthly salary higher than the Portuguese minimum wage of €870, living in Portugal is affordable and, generally speaking, considerably lower than the average cost of living in the US.  

The cost of living in Portugal compared to the USA highlights its affordability. Living in Portugal offers foreign residents certain tax benefits, and while the popular NHR program has ended, the Tax Incentive for Scientific Research and Innovation (the so-called Portugal NHR 2.0) is taking its place.  

Comparing living costs in Portugal vs the USA shows that daily expenses are considered more affordable in Portugal than in several other countries when buying food and fresh produce, public transportation costs, and gas prices. Let’s have a look at some more specific examples. 

Grocery prices and household essentials

The Portugal cost of living vs USA is affordable, and this extends to daily expenses. Groceries are affordable in Portugal, particularly when buying local goods rather than imported products. Anything grown or caught in Portugal, such as fruit, vegetables, seafood, and meat, is guaranteed to be more affordable.  

In Portugal, monthly grocery costs range from around €150 to €350 for a single person, while in the USA, monthly costs are usually between €300 and €400, or even more. This will obviously depend on your lifestyle, location, and the supermarket you choose, in addition to whether you buy locally or shop for imported produce.  

The table below outlines the average prices of some basic food items in Portugal compared to USA. 

Leisure and entertainment in Portugal compared to the US

Now, let’s look at some costs for recreational activities, sports, hobbies, movies, and other entertainment. When looking at Portugal’s cost of living compared to the US, the southern European country also comes out on top.

While living in Portugal, you will find that even miscellaneous services such as haircuts, home repairs, garbage collection, and other services are available at cheaper rates. 

Sports and fitness

Staying in shape in Portugal is much more affordable than it is in the US. The average monthly fee at a fitness club for one adult is $39 (€38) in Portugal, while access to a fitness club in America will set you back about $47 (€45) per month. 

Alcohol costs

Alcohol is significantly cheaper in Portugal than in the USA. A good bottle of wine will set you back around €4.99 in Portugal, but costs three times as much in the USA. Similarly, in Portugal, a bottle of domestic beer is €1.10, but it will cost more in the USA. Imported beer is not much more expensive at €2.10 in Portugal, while in the USA, it clocks in at closer to €3.11. 

Dining out costs

In Portugal, eating out is a big part of the local culture. However, when you compare the cost of living in the US to Portugal, you’ll be pleasantly surprised by how affordable it is to dine out in Portugal. Living expenses won’t break the bank, as they can in the USA. 

At a local pastelaria (pastry shop), you’ll usually find a lunch menu for €5 and a toasted sandwich for about €2 or €3. At a café, lunch, including wine or coffee, usually costs between €8 and €12. A regular cappuccino will cost you €1.83 and gets cheaper the further away you move from the city centers. 

For dinner options in Portugal, a meal at an inexpensive restaurant will cost around €11, while a three-course meal for two at a mid-range restaurant will cost €45 ($53), which could cost more than €66.70 ($72) in the USA.

When it comes to fast food, a McMeal or equivalent combo meal at McDonald’s will cost €8, while the same meal will cost €10.69 in the USA. 

Transportation costs in Portugal vs USA

For the most part, public transportation costs in Portugal are lower than in the USA. Some exceptions include the gasoline costs and purchasing a new car, which are generally more affordable in the USA. 

However, if you prefer to use public transportation in Portugal, you’ll find it much cheaper there. Here, a monthly pass costs €40 ($47), a one-way ticket on local transportation costs €2, and the cross-country train ticket, also known as the Portugal Rail Pass, can be purchased for at least €73 ($84), but prices vary. 

School costs in Portugal vs USA

As in any country, education can come at a high cost, depending on your chosen option. Educational costs include tuition fees for private and international schools and universities and additional educational expenses like books, supplies, and possibly accommodation and public transportation costs.

In general, tuition fees in Portugal are much more affordable than in the USA. On average, one child at an international school in the USA would cost around €21,862 ($25,660) in the USA, while this would cost €10,720 in Portugal. 

If your children are not of school age yet, you will need to consider childcare services such as babysitting and early education programs. The monthly fee for babysitting or kindergarten in Portugal compared to the USA average of €1,370 ($1,608) is just €454 ($533). 

In Portugal, public schools are free for all Portuguese citizens and foreign residents. However, if you choose to send your children to one of the exclusive private schools or international schools in Portugal, you will pay upwards of €11,251 ($13,206) each year (average for one child per year). This cost will vary depending on the school and your child’s grade, with options more affordable than this. In comparison, private international schools in the USA will cost around €22,900 ($26,879) per year. 

Traveling costs

A highlight of Portugal is that traveling around the country is quite affordable. Portugal has an excellent public transport system. You can spend as little as €80 a day on activities. Of course, the cost of accommodation will vary depending on where you stay and the kind of property you stay in.  

Healthcare costs

The Portugal healthcare system is excellent and offers both public and private healthcare options. You also shouldn’t have a problem finding doctors who are comfortable conversing in English, which should put you at ease if you don’t speak Portuguese. Children under 18 years and seniors over 65 receive free medical care, while everyone else is required to pay a small contribution. 

While healthcare here is not completely free, it is affordable. The World Health Organization ranked Portugal in 12th place in its assessment of healthcare systems. The World Index of Healthcare Innovation considers choice, quality, science and technology, and fiscal sustainability in its ranking and lists Portugal in 23rd position in 2024. Numbeo’s 2025 Healthcare Index ranks Portugal in 23rd position.  

It is also a well-known fact that private health insurance is fairly affordable in Portugal. The cost of health insurance for expats in Portugal offering basic coverage ranges between €25 and €50 per month, while in the United States, most Americans pay around €500 per month for a basic private healthcare plan. 

Electricity and bills expenses in Portugal vs USA

In Portugal, the combined cost of electricity, heating, air conditioning, water, and garbage for a 185 m2 apartment will cost €114.74. In the USA, the average cost of utilities is around €180.86. This cost will vary based on the season and how often you use amenities like air conditioning and heating. In Portugal, apartments can get quite cold during winter, so make sure yours has a good heating system. 

Housing and Rent: Portugal vs. the US

Housing costs in Portugal are generally much more affordable than in the USA. In Lisbon, the capital and one of the best places to live in Portugal, the average asking price for a property stood at €6,934 per square meter, reduced to €4,935 if you consider the metropolitan area.

Remember, the prices will vary between major cities like Lisbon, which is the most expensive city to live in Portugal, and the second largest city, Porto, and other locations. Our guide on the cost of living in Porto offers detailed insight into housing and other monthly costs.

If you buy property in Portugal, you will need to consider property taxes. At the time of purchase, you must pay around 0-8 percent of the property purchase price and a Stamp Duty of 0.8 percent. In Portugal, property tax (IMI) ranges from 0.3 percent to 0.45 percent of the total value for urban properties and 0.8 percent for rural properties. This is a municipal tax that you will need to pay on an annual basis.

For those who want to compare the mortgages in USA vs Portugal, both of these countries offer financing to foreign nationals but have strict lending criteria.

When it comes to renting, in Portugal, a one-bedroom furnished home in the city center will cost €904 ($1,050), although outside the city center, this will drop to around €713 ($828). In the United States, the average rent for a one-bedroom apartment in a city center is around €1,487 ($1,728) per month, and €1,227 ($1,426) per month outside the city center.

Rent in Portugal can be half the cost of comparable US apartments, with prices in Lisbon for a one-bedroom apartment averaging around €1,410 ($1,638) compared to over €3,437 ($3,993) for an equivalent apartment in New York. Find out more about Portugal vs US real estate in our detailed guide.

Living costs depend greatly on where you live in Portugal. For example, the cost of living in Guarda, one of the lesser-known cities (yet no less charming), offers surprisingly affordable real estate opportunities.

Cost of Moving to Portugal

We’ve deep dived into the cost of living in Portugal compared to US, but what about the costs of moving to Portugal. When relocating to Portugal, it is important to consider the actual cost of moving to Portugal from the USA. You can expect to incur the following costs: 

• Shipping expenses to transport your belongings  
• Plane ticket to Portugal  
• Rental deposit (if renting)  
• New phone plan  
• Cost of additional goods to help you get settled  

These costs will vary based on the mode of shipping (such as plane or ship), the airline you choose, the area you rent in or buy property in, and so on. 

How to move to Portugal?

To move to Portugal from the USA, you need to have the legal right to reside in the country. Visit our Portugal Immigration Guide for more information. You can also find expert advice in our guide about how to move out of the US.

The most popular option is the Portugal Golden Visa, which is a residency by investment introduced in 2012. Alongside this, the D7 Visa (for retirees or those with passive income), D2 Visa (for entrepreneurs), and D8 (Digital Nomad Visa) are also very popular options.

You can get in touch with our residency and citizenship division, Global Citizen Solutions, to kickstart your residency in Portugal.

As you can see, there are many benefits to moving to Portugal from the USA. The only downside you may find is dealing with Portugal’s bureaucratic processes, which many foreigners find a bit difficult to deal with. It helps to have a trusted professional who speaks the language to help you during these times.

Aside from this, you are bound to experience a greater quality of life at a more affordable cost, leaving you free to enjoy the rich culture, delicious cuisine, and breathtaking sites the country has to offer.

Goldcrest: How We Can Help You

Goldcrest is a local buyer’s agent situated in Portugal. We provide insightful real estate expertise and strategic advice. From sourcing to property acquisition, we help clients identify outstanding investment opportunities in some of Portugal’s finest locations.

Whether you’re a family looking to relocate or invest in land for redevelopment, our team of experts can help you find the right property without the hassle or fuss. Contact us to get the ball rolling on your Portuguese real estate investment.